The Allowable Rate of Production (ARP) is the allowable volume of oil that can be produced from a well completion. This rate is assigned via a minimum allowable, a maximum permissible rated-off-target penalty (MPR - OTW Penalty), a maximum permissible rate (MPR), the Economic Allowance (EA), or good production practice (GPP). Except for a well completion subject to or producing below the Minimum Allowable or assigned GPP an ARP is subject to a gas-to-oil ratio (GOR) penalty.
The Integrated Resource Information System (IRIS) assigns an ARP to a well at the time of license based on its location and proposed completion as described in Directive PNG012: Allowable Rate of Production: Oil Wells.
An operator can make an application for a different ARP other than the one assigned by IRIS:
- A well under EA can make an application for an MPR or GPP.
- A well under MPR can make an application for GPP.
- A non-horizontal well completion that is subject to an off-target penalty can make an application for a MPR – OTW penalty.